Sparkle Bank Past Questions and Answers

Sparkle Bank Past Questions and Answers:

What does APR stand for?

a) Annual Payment Rate

b) Annual Percentage Rate

c) Average Payment Ratio

d) Account Payment Return

Answer: b) Annual Percentage Rate

Which type of account typically offers the highest interest rate?

a) Checking account

b) Savings account

c) Certificate of Deposit (CD)

d) Money market account

Answer: c) Certificate of Deposit (CD)

What is the minimum age requirement to open a Sparkle Bank checking account?

a) 16 years

b) 18 years

c) 21 years

d) 25 years

Answer: b) 18 years

Which of the following is NOT a common credit card fee?

a) Annual fee

b) Overdraft fee

c) Late payment fee

d) Balance transfer fee

Answer: b) Overdraft fee

How often is interest typically compounded on a savings account?

a) Daily

b) Weekly

c) Monthly

d) Annually

Answer: c) Monthly

What is the maximum FDIC insurance coverage for a single account holder?

a) $100,000

b) $250,000

c) $500,000

d) $1,000,000

Answer: b) $250,000

Which of the following is a type of mortgage loan?

a) APR

b) ETF

c) ARM

d) IRA

Answer: c) ARM

What is the purpose of a co-signer on a loan?

a) To receive interest payments

b) To share responsibility for the loan

c) To provide collateral

d) To increase the loan amount

Answer: b) To share responsibility for the loan

Which government agency regulates and supervises banks in the United States?

a) FDA

b) SEC

c) IRS

d) FDIC

Answer: d) FDIC

What is the main function of a cashier's check?

a) To pay for groceries

b) To transfer money internationally

c) To guarantee payment

d) To withdraw cash from an ATM

Answer: c) To guarantee payment

Which type of investment typically offers the highest potential returns and the highest risk?

a) Savings account

b) Treasury bonds

c) Stock market

d) Certificate of Deposit (CD)

Answer: c) Stock market

What does the acronym IRA stand for in the context of retirement savings?

a) Individual Retirement Account

b) International Revenue Assessment

c) Investment Risk Assessment

d) Interest Rate Adjustment

Answer: a) Individual Retirement Account

What is the maximum contribution limit for an individual 401(k) account in 2023?

a) $5,000

b) $10,000

c) $19,500

d) $50,000

Answer: c) $19,500

Which of the following is a key feature of a fixed-rate mortgage?

a) Interest rate changes periodically

b) No interest is charged

c) Interest rate remains constant

d) Interest rate depends on the stock market

Answer: c) Interest rate remains constant

What is the term for a loan that uses the borrower's home as collateral?

a) Personal loan

b) Unsecured loan

c) Mortgage loan

d) Student loan

Answer: c) Mortgage loan

What is the primary purpose of a certificate of deposit (CD)?

a) To access cash easily

b) To earn a higher interest rate

c) To make online purchases

d) To pay bills

Answer: b) To earn a higher interest rate

Which of the following is an example of a variable expense in a monthly budget?

a) Rent or mortgage

b) Grocery bills

c) Car loan payment

d) Health insurance premium

Answer: b) Grocery bills

What is the penalty for early withdrawal from a certificate of deposit (CD) in most cases?

a) No penalty

b) A small fee

c) Loss of all interest earned

d) Doubling of interest earned

Answer: c) Loss of all interest earned

Which of the following is NOT a common type of credit card?

a) Visa

b) MasterCard

c) Debit Card

d) American Express

Answer: c) Debit Card

What is the purpose of a routing number on a personal check?

a) To identify the bank

b) To indicate the check number

c) To list the payee's name

d) To provide a unique barcode

Answer: a) To identify the bank.